Since the start of the Covid-19 pandemic, the Canadian government has been leaning on banks and Credit card companies to cut interest rates on debts for consumers suffering from the financial fallout of COVID-19.

The federal government spoke to banks and urged them to offer considerable relief to clients at this trying time. “We recognize that they are a significant challenge for many Canadians at this point. That is why we are encouraging them to take action to alleviate the burden,” Trudeau said during a daily briefing in March, on the COVID-19 virus.

And banks heeded his call. Mortgage deferrals became something that most prime banks are offering their clients. Deferring payments on loans and credit cards, lowered interest on line of credits or credit cards are something else that many consumers are taking advantage of. With over a million Canadians newly unemployed due to COVID-19, in the month of March alone, millions of consumers would have defaulted on their payments regardless.

Are consumers taking advantage of the financial relief that banks are offering? The wait time to speak to a bank representative may often exceed two hours. This is a sign that Canadians are coming out in droves to benefit from these crucial relief measures. But the never-ending wait-time may discourage debtors from gaining from these measures.

I am here to tell you; it is worth the wait. Stay on the phone for those two hours, or better yet, reach out to your financial advisor or bank representative via email and see what sort of negotiations you are eligible for. Some consumers are taking this time to negotiate the interest rate on their debt while making payments towards clearing it. Others are deferring their mortgage payments and using the freed-up funds to pay down on their credit cards. Be mindful, do not get caught up in the cycle of bad credit.

While this is unquestionably a stressful and bewildering time, and it may be difficult to take the mental space to make those phone calls, taking the time to organize your finances and speaking to your bank may end up saving you thousands in the long run. Thousands that should be put to better use than paying interest on old debt.

The post COVID-19 – Negotiate Your Credit Card Debt Now appeared first on BHM Financial.